World Business Briefing; Britain: Vacation Service in Merger With Auto Group

By BLOOMBERG NEWS

Published: June 26, 2007

The Saga Group, a British provider of insurance and vacations to the consumers 50 and older, agreed to merge with the Automobile Association in a transaction that values the two closely held companies at £6.2 billion ($12.4 billion). The deal would
enable Saga to offer policies and cruises to the Automobile Association's older customers and the association to sell roadside assistance to Saga's 2.5 million clients, the companies said. About 15 million
British motorists rely on the association when their cars break down. Saga's chief executive, Andrew Goodsell, will head the company, and the automobile association's chief executive, Tim Parker, will
quit.